Taxpayers deserve to know how their money gets spent on charter schools

Published: Sunday, July 6, 2014 at 11:08 p.m.

Last Modified: Sunday, July 6, 2014 at 11:08 p.m.

It was encouraging to hear Gov. Pat McCrory state unequivocally that the state's charter schools are subject to the same disclosure rules as other publicly funded schools.

The governor made that statement in a meeting Wednesday with StarNews reporters, editors and the publisher, characterizing "indefensible" and "hypocritical" the notion that there should be two separate sets of standards for schools that receive the vast majority of their support from the taxpayers. The state's open-government laws require public entities, including schools, to provide upon request detailed budget, including employee salaries and other key financial information.

But the nonprofit Charter Day School Inc. and the for-profit Roger Bacon Academy private company, both founded by Baker Mitchell, have been unwilling to comply fully with requests for information on the three local charter schools affiliated with Mitchell's companies. The StarNews has filed a formal complaint with the state, and last Sunday ran an article that raises serious questions about the financial arrangement between Mitchell's companies and the schools.

As reported by the StarNews' Caitlin Dineen and Pressley Baird, Charter Day School Inc. administers Charter Day School in Brunswick County, Columbus Charter School near Whiteville and the under-enrolled Douglass Academy in Wilmington. Those schools, which receive millions of dollars each year from taxpayers, pay Mitchell's company a handsome 16 percent management fee.

The Roger Bacon Academy also collects rent from two of the charter schools for the buildings they occupy. Another Mitchell company, the for-profit Coastal Habitat Conservancy, leases furniture, computers and other equipment to the three existing charter schools.

There is reason to wonder whether the schools could do better by seeking bids. For example, the building Columbus Charter School occupies is valued at $1.36 million, according to tax records. The school pays more than half that amount for rent each year. For the cost of two years' rent, the school could buy the building outright.

Had a traditional public school or local government made a decision like that, many taxpayers and lawmakers would cry foul. But when a for-profit business takes tax money, any suggestions that it, too, should be held accountable are often dismissed by charter school advocates as an abomination to the free- market principle. That's not fiscal responsibility.

Fans of the local Bacon Academy charter schools point to better test scores relative to many public schools. But charter school enrollment is self-selecting, in that parents must be both motivated and logistically able to take advantage of school choice. Because charter schools do not have to provide transportation or lunches, they automatically exclude a sizeable percentage of the economically disadvantaged students most often cited as the primary beneficiaries of school choice.

At any rate, performance is not at issue here. Accountability is – accountability for how the taxpayers' money is being spent. It matters how much of the taxpayers' money is going into classrooms, and how much is going to fatten a private company's bottom line.

<p>It was encouraging to hear Gov. Pat McCrory state unequivocally that the state's charter schools are subject to the same disclosure rules as other publicly funded schools.</p><p>The governor made that statement in a meeting Wednesday with StarNews reporters, editors and the publisher, characterizing "indefensible" and "hypocritical" the notion that there should be two separate sets of standards for schools that receive the vast majority of their support from the taxpayers. The state's open-government laws require public entities, including schools, to provide upon request detailed budget, including employee salaries and other key financial information.</p><p>But the nonprofit Charter Day School Inc. and the for-profit Roger Bacon Academy private company, both founded by Baker Mitchell, have been unwilling to comply fully with requests for information on the three local charter schools affiliated with Mitchell's companies. The StarNews has filed a formal complaint with the state, and last Sunday ran an article that raises serious questions about the financial arrangement between Mitchell's companies and the schools.</p><p>As reported by the StarNews' Caitlin Dineen and Pressley Baird, Charter Day School Inc. administers Charter Day School in Brunswick County, Columbus Charter School near Whiteville and the under-enrolled Douglass Academy in Wilmington. Those schools, which receive millions of dollars each year from taxpayers, pay Mitchell's company a handsome 16 percent management fee.</p><p>The Roger Bacon Academy also collects rent from two of the charter schools for the buildings they occupy. Another Mitchell company, the for-profit Coastal Habitat Conservancy, leases furniture, computers and other equipment to the three existing charter schools.</p><p>There is reason to wonder whether the schools could do better by seeking bids. For example, the building Columbus Charter School occupies is valued at $1.36 million, according to tax records. The school pays more than half that amount for rent each year. For the cost of two years' rent, the school could buy the building outright.</p><p>Had a traditional public school or local government made a decision like that, many taxpayers and lawmakers would cry foul. But when a for-profit business takes tax money, any suggestions that it, too, should be held accountable are often dismissed by charter school advocates as an abomination to the free- market principle. That's not fiscal responsibility.</p><p>Fans of the local Bacon Academy charter schools point to better test scores relative to many public schools. But charter school enrollment is self-selecting, in that parents must be both motivated and logistically able to take advantage of school choice. Because charter schools do not have to provide transportation or lunches, they automatically exclude a sizeable percentage of the economically disadvantaged students most often cited as the primary beneficiaries of school choice.</p><p>At any rate, performance is not at issue here. Accountability is – accountability for how the taxpayers' money is being spent. It matters how much of the taxpayers' money is going into classrooms, and how much is going to fatten a private company's bottom line. </p><p>The public deserves to know that equation.</p>